In the past few days, the interest rate for "Simple Coin Earn" on OKX has been particularly volatile.
Since last night, it has been jumping wildly between 5% and 46%, and this morning it even soared to a peak of 46%, which is quite exaggerated!
In fact, the main reason behind this is the supply and demand of funds.
Simple Coin Earn allows you to lend the USDT you deposit to traders or project parties that have funding needs.
When there are many people borrowing money in the market, the platform has to raise interest rates to attract funds; when there are fewer borrowers, the interest rates drop.
Recently, the market has also been quite hot, with $ETH breaking through $4600 today, setting a new high since 2022.
The booming market leads to active funds, with everyone buying and selling, which increases the speed of fund flow and indirectly pushes up the interest rates of liquid financial products.
In simple terms, the faster the funds flow, the more opportunities there are, but the risks are also greater.
Although liquid financial products are flexible and look attractive in terms of returns, don't just focus on the high-interest rates.
You still need to be cautious, arrange your funds reasonably, and seize opportunities steadily.
